Property - still the investment it used to be?

Costy

We have paid off our mortgage about 5 years ago, we have a reasonable business (village pub), and are managing to save around £800 a month. A house near us has come up for sale at a good price, it needs some refurbishment and lots of decorating, but it's in a great place in a very popular village. We have savings of around £25k, would it be a good idea to buy this property? We have two sons who it may be good for, or we could refurb it and rent it, or we could just sell it on. Are we mad to go into property in our 50s, or is this a good use of our savings?

agrinnall

It's not necessarily mad to go into property, but you need to have a very clear idea of your aims and timescales, and you don't appear to have these so your risk is considerably higher.

flashg67

I don't think age should be a factor though it may make you wiser & more cautious. I bought my first 2 rental houses in my late forties. You know your local area best. I'd want to get a detailed idea of likely refurb costs and possible profit first.
If the worst happened, and you could afford to keep it empty whilst selling or waiting for a tenant, then why not give it a go. The potential satisfaction factor, especially if you do some work yourself, is incentive enough for some
I'm sure running a pub must be harder work!

sheff6107

What position are your sons in? Do they / will they need deposits to fund homes of their own?

Costy

My sons both have savings that I built up for them since birth, the eldest (22) has a help to buy Isa with Halifax also.

I am also a bit woolly on the tax aspect, is CGT payable on just the profits of a house sale if it's not your main residence?

glasgowdan

I think doing up a house for profit is a very tricky hobby now and I wouldn't consider it. Housing prices seem to be level and very gradually increasing, so unless the house was very run down and in a desirable area and you're very lucky to buy it without too much co petition driving up the price, I'd leave it. Unless you want a home for the family that is.

Mgman1965

Property developing isn't really a done thing these days as it was in the noughties.

The builder that does any work I need doing on my house used to buy a dump, do it up and sell on making a good profit.

He stopped doing it some years ago as he said it wasn't worth it anymore.

The reason he said was estate agents !!!!!!!

He said agents would be instructed to sell a dump, work out renovated, be worth, say £100,000, work out to renovate would cost, say, £20,000 so market at £75,000 no offers.

Worth it to a private buyer renovating for themselves, but not for a developer to sell on.

Crashy_Time

https://www.property118.com/section-24-forced/92078/


Most of them just need to find a buyer now........

Bluebirdman_of_Alcathays

Crashy_Time wrote: »

https://www.property118.com/section-24-forced/92078/


Most of them just need to find a buyer now........

Some of those LLs are not very bright....'I'm going to have to sell my properties is this really what the Tories had in mind'

Yes. That was exactly what the legislation was trying to do. No sympathy for those over geared debt junkies.

FBaby

You need to do your research. You need to understand all the implications, financial, what it would mean being a landlord, even to your sons etc...

If the simple idea of doing that research puts you off, don't do it as managing a renovation project to sale, or becoming a landlord will be much more demanding than doing the research as to whether it is feasible/something you want to do.

Rachel_MBA_Student

I think since you already have experience in this area it would be a good investment. You know the location is good, if you can estimate how much revenue you can make each month then you can work out with the costs of refurbishment how long it will take you to break even. I would go for it and then rent it out if your sons aren't ready.